Full Year 2024 Intertek Group PLC Earnings Call Transcript
Key Points
- Intertek Group PLC (IKTSF) delivered a strong financial performance in 2024, with earnings slightly ahead of market expectations.
- The company achieved a fourth consecutive year of mid-single-digit like-for-like revenue growth, with a 6.3% increase at constant currency.
- Operating profit increased by 13% at constant currency, and the operating margin improved by 100 basis points to 17.4%.
- Intertek Group PLC (IKTSF) reported a record adjusted cash flow of EUR789 million, with a cash conversion rate of 121%.
- The company announced a EUR350 million share buyback program and raised its medium-term margin targets to 18.5%-plus.
- Sterling's strength compared to major currencies negatively impacted revenue growth by 470 basis points.
- The Industry and Infrastructure division experienced a low-single-digit like-for-like revenue growth, partly due to the exit of non-profitable contracts.
- Operating profit in the Industry and Infrastructure division decreased by 2%, with a margin decline of 40 basis points.
- The company faces challenges from cost inflation, which partially offset positive margin drivers.
- There is ongoing uncertainty regarding global trade dynamics, including tariffs and geopolitical tensions, which could impact future performance.
Good day ladies and gentlemen, and welcome to Intertek full year results 2024. (Operator Instructions) I would like to remind all participants that this call is being recorded. (Operator Instructions) I will now hand over to André Lacroix, Chief Executive Officer, to start the presentation.
Good morning to you all, and thanks for joining us on our call today here from London. I have with me Colm Deasy, our CFO; and Denis Moreau, our VP of Investor Relations.
In 2024, we've delivered a strong performance with earnings slightly ahead of market expectations, and I would like to start a call today by recognizing all of my colleagues around the world for their incredible support.
Here are the key takeaways of our presentation today. 2024 marks the fourth consecutive year of consistent mid-single digit like-for-like revenue growth in line with the strategic guidance we gave in our Capital Market event a couple of years ago. Profit conversion was strong, with a margin
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